Illinois enters a state of insolvency - schadenfreude time for small gov't advocates?

[glenn1]

It's gotten to the point where some of the big states like California, Illinois, New York, etc. are becoming insolvent. IL has resorted to changing property tax billing so that they collect the bulk in the beginning of the year rather than two equal payments. Cash on hand varies from day to day, sometimes dipping below $1 million. Governor is proposing 50% tax increase, a move that even the folks on Huffington Post are fighting. State agencies are on the brink of shutting down for lack of funding.

Are we beginning to see the impending crack-up of major political entities in the U.S., and ultimately is this a necessary corrective event?

http://www.chicagobusiness.com/cgi-bin/mag/article.pl?articleId=32910

http://www.huffingtonpost.com/ray-hanania/fighting-illinois-tax-inc_b_175215.html

 

[Schadenfroh]

You rang?

 

[drebo]

It's been schadenfreude time for small government supporters for a long time.

 

[Ozoned]

Maybe this is just the end result of a plan by corporate America and the evil republican wealth protectors of the rich to tear down the major metropolitan population centers. Disperse the voters,,,if you will.

 

[Jaskalas]

This bankruptcy is only the beginning as we've a federal government that can delay the inevitable.

 

[MotF Bane]

You rang?

First post win!

 

[nyker96]

maybe that's just bad economy don't read too much into it. when things get better the budget will close again.

 

[Hayabusa Rider]

It's funny that the Illinois left got what it asked for. Now the Huffington post reads like a right wing blog. CA is next, then us. Well, maybe us first since Paterson wants to add a billion more in taxes, without making cuts or reforms in over-bloated inefficient programs.

A race to the bottom.

 

[jhu]

Interesting times. I'd love to see Illinois and California default on their debt. I suppose New York isn't doing too well either, so let's add them to the mix of "states that would be an interesting place to live if they defaulted"

 

[WhipperSnapper]

It's been schadenfreude time for small government supporters for a long time.

What's sad is that while they have good positions on some issues, they don't have a clue as to how the application of free market principles to international trade and immigration are bringing down the nation's economy; they don't realize that many of their ideas are heavily responsible for our nation's problems.

 

[Patranus]

Simply 70 years of FDR style policies shifting power form the states to DC. As DC increases tax rates on everything, this limits the states ability to tax. Money is then handed out as political favors in congress to buy votes for senators pet projects/legislation.

It is time to restore the role of the state (and its ability to collect taxes).

 

[JSt0rm]

 

[DisgruntledVirus]

Mine's bigger

 

[Double Trouble]

I don't see this trend changing anytime soon. Every major city/state governed by people who can't figure out how to spend within their means is a ticking timebomb. The federal government is a ticking nuclear bomb, and nobody is interested in disarming it.

I suppose that's just how it's going to have to be. We're going to keep playing smoke and mirrors and continue spending spending spending, until finally at some point the jig is up and we're in for some major pain.

 

[mizzou]

glad i chose to move out of illinois lol,

those people.....

beats me how missouri is faring better

 

[Jiggz]

It's how progressive roll! Just like they keep saying, "there's no truth only interpretation". And this means that there is really no insolvency instead it's just a temporary shortcoming until we collect more revenues. And if those revenues never show up, then it's still not an insolvency instead it's just a temporary-temporary and probably more temporary shortcomings until we collect more revenues! There's no such thing as insolvency! Does that sound like Sotero Obama Barrack (SOB)?

 

[Ronstang]

Considering that Liberals are leeches/parasites it is no wonder that eventually they will suck the life out of their host.

 

[Patranus]

The "progressives" are going to use this as an excuse to grab even more power for the federal government even though "progressive" policies cause these problems.

 

[heyheybooboo]

Times are tough, boys (and girls).

But there are small pockets of 'good' and I suspect there will be an increase in the typical out-migration from areas in 'distress'.

At least for those who can afford the move.

Because of the shared State <---> Local Thang, when the State 'teeters' the Locals start wobbling, too. Especially in the pockets of high unemployment.

The SE and the West stand to gain from the 2010 Census, and over the next decade that trend will only increase with increased out-migration.

From Virginia and the Carolinas, Georgia, Florida, Texas, Arizona, Utah and California.

A northern republican makes for a pretty good southern democrat



--

 

[drebo]

What's sad is that while they have good positions on some issues, they don't have a clue as to how the application of free market principles to international trade and immigration are bringing down the nation's economy; they don't realize that many of their ideas are heavily responsible for our nation's problems.

Uhm. As stated in another post, in response to another one of your moronic claims that small gov't advocates "don't understand the free market", We don't currently HAVE a free market here.

The labor market, especially, in the US is NOT a free market. Things like minimum wage and unions and insane levels of regulation make it impossible for certain jobs to be competitive when performed domestically.

How exactly is that the free market's fault? The free market (or, if you prefer, the lack of a domestic free labor market) is what drove those jobs away in the first place. A return to that would only bring them (or some of them at least) back.

 

[WhipperSnapper]

It's funny that you guys would bring up that argument because years ago, I too was an advocate of laissez-faire capitalism (and would thump you over the head with my hard cover Atlas Shrugged and OPAR) and I always tried to point out to people that what we have now is not real capitalism and that they are laying the blame for such and such a problem at the wrong doorstep.

If we had a real free market, one that even John Galt would approve of, what do you think would be the end result? Widespread economic prosperity and freedom?

I think the end result would be that a small portion of the populace would be wealthy with the rest living in third world poverty (which is what would happen if we merged our nation's labor market and economy with the third world's almost infinite supply of labor). We would have "de jure" freedom on paper, but in actuality we would have little "de facto" freedom. (Imagine your employer trying to regulate your life outside of work--they would do it if they could.)

Yes, I'm fully aware that our current system is not real capitalism, but I truly doubt that real capitalism would prove to be good for us. There is just too much information asymmetry, too much available labor in the world, and too many externalities that need to be regulated for that to happen.

 

[Ozoned]

What's sad is that while they have good positions on some issues, they don't have a clue as to how the application of free market principles to international trade and immigration are bringing down the nation's economy; they don't realize that many of their ideas are heavily responsible for our nation's problems.

1/3 of the nations population is concentrated in the 20 largest metropolitan areas in the USA. They are giant welfare magnets, with huge numbers of of people living in poverty. I guarantee that there is very little conservative principles at work in these areas. Why don't you show me how conservatives exploit these areas for political gain and how they are responsible for the woes of 1/3 of our population?

Edit: Keep in mind while you are explaining it to me that these are all nearly solid Blue[/i] areas.

 

[dmcowen674]

1/3 of the nations population is concentrated in the 20 largest metropolitan areas in the USA. They are giant welfare magnets, with huge numbers of of people living in poverty. I guarantee that there is very little conservative principles at work in these areas. Why don't you show me how conservatives exploit these areas for political gain and how they are responsible for the woes of 1/3 of our population?

Edit: Keep in mind while you are explaining it to me that these are all nearly solid Blue[/i] areas.

"It's the Corporations stupid"

 

[Acanthus]

Illinois is still screwed up because of the Blagojevich (sp?) indictments. There is a ton of state money tied up in audits and frozen. The dept of education is having a hell of a time over there keeping the teachers paid and the schools open.

That is the reason for the property tax change recently.

 

[Jaskalas]

Times are tough, boys (and girls).

But there are small pockets of 'good' and I suspect there will be an increase in the typical out-migration from areas in 'distress'.

At least for those who can afford the move.

Think about that one for a moment. Those people who you can tax to solve the budget woes are the same ones leaving. This cycle feeds itself.